Global stock markets have been whipsawed driven higher by new media company deals and weighed on by concerns of a trade war. Disney and Comcast are in a head to head battle for Fox’s assets, which is likely to push the entire sector higher. As the bidding war ramps up, discretionary shares should benefit. Separately, the White House seems to be hell-bent on attaining an agreement from China that will allow Trump to say he has a win. He has thoughted in the past that winning a trade war is easy. While he does have the upper hand given that U.S. imports of Chinese good dwarf U.S exports to China.
Media Stocks are All the Rage
Media stocks, specifically those that provide premium content are all the rage, and prices are shooting higher. Disney raised its bid for the assets of Fox, which has pushed shares of FOX, Disney and Comcast higher. Netflix has already surged to fresh all-time highs, as the concept of a subscription business model and its huge hoard of cash flow, is enticing investors into this space.
Disney raised its bid for Twenty-First Century Fox’s to $71.3 billion. The new deal is $38 a share, an increase of $7 per share from Disney’s prior bid of $28 a share offers in December. The new Disney bid is $3 per share above Comcast’s $35 a share all-cash bid last week. Comcast’s deal is valued at $65 billion. If you want to trade CFDs on some of the largest media stocks, you can evaluate the iFOREX review of these shares.
Without Kudlow The Trade Spat Has Escalated
In the absence of Larry Kudlow in the wake of his heart attach, trade advisor Peter Navarro has set the agenda. Navarro said China has more to lose in a trade dispute with the U.S. and none of the Trump administration’s efforts to negotiate with China have yielded progress Navarro said he is willing to negotiate further. He believes the Chinese have underestimated Trump’s resolve to secure changes in China’s trade practices. Since China has little it can do on the trade front to respond, its equity markets have been hammered. There is also the chance that Trump has underestimates China which is run by a dictator and has not elections to deal with in November. China could easily wait this out which could put pressure on economic growth toward the end of 2018.
Wall Street is Leery of a Trade War
Wall street has soured on Trumps trade actions. Goldman’s Blankfein spoke up on trade with China concurring that there’s a lot of frustration with China on trade, but he would not have recommended the course the U.S. government has taken with China on trade. He said that it’s unclear where the Sino-U.S. trade dispute is headed. Blankfein said you could push the tariffs envelope right to the limit of U.S. imports to China to remind them of their limited ability to retaliate.